According to TUAW, Pwnage Tool 2.0 will activate, jailbreak, and unlock first generation iPhones running any firmware up to and including version 2.0. Unfortunately, it will not unlock an iPhone 3G (at least, not yet). iPhone 3G owners can still use the tool for activation and jailbreaking (so you can run 3rd party apps not supported by Apple and the new iPhone App Store).

So far, skimming through the 1322 comments on their announcement post, I’ve not seen any complaints or death threats about the tool bricking iPhones, but one should still proceed with caution. According to one update to the post, some people either get an error 1600 from iTunes or they notice a “failure to prepare x12220000_4_Recovery.ipsw” in the log. They’ve provided a workaround, however. If this happens to you, simply mkdir ~/Library/iTunes/Device Support or alternately nuke all the files in that already extant folder and re-run Pwnage Tool.

Note: Installer.app is not yet ported and most applications are not under Cydia, so it is not possible to install pretty much anything outside of the default Cydia repos (small) or AppStore. Expect to wait a month or so until most apps are ported to the new iPhone 2.0 firmware… or learn some Java/Python and code around the bindings to objective C and code your own programs.

I spent a full 24 hours trying to jailbreak my iPod touch with winpwn the windows (eww I know) version of this tool it made my iPod totally unstable it froze all the time. I finally ended up using iLiberty+ to jailbreak my 1.1.4 firmware. while cydia doesn’t have everything installer.app has it does have a lot of unix power user stuff that installer doesn’t. I don’t even have installer anymore and I don’t miss it. people think that cydia is just an alternitive to installer; this is not the case. cydia is just a GUI for a fully functional debian apt-get system. if you don’t know what that is then you wouldn’t understand and should probably just stick with installer.

Will I still retain the many useful Apps already on my 1.1.4 version iPhone (created via Installer) if I use Pawnage 2.0? If I lose them, then I’m willing to wait. Also, I see Pawnage 2.1 purportedly corrects some initial Pawnage problems.

Since the 2.0 firmware came out I’ve been googling like mad to see if an unlocked version was available… I just tried the ipsw at this location… http://www.iphone-hacks.com/downloads/file/113and it works !!!! So this is me spreading the joy…For those concerned, I’m from India, and my iPhone 2.0 (EDGE) now works on the Vodafone network !!